FBT availability, Income Tax

[CHITRA HARIHARAN]

Earlier I had referred one issue relating to differentiation in perquiste calculation by a leading company between third party lease and self lease. This was clarified by Shri D Gupta stating that companies cannot differntiate between third party lease and self lease. It was further clarified that Company can opt to pay average tax on the perquiste calculation on company leased accomadation. Now the question arises whether the same can be treated as FBT and whether the Company can opt to pay 6% FBT ignoring rule 3a instead of average tax?

Posts / Replies

[Surender Gupta]

Both the provisions are mutually exclusive. Provisions of requisite are applicable to those persons who are out of FBT net.